BofA Trims Kayne Anderson (KBDC) PT to $16.50, Cites Missed Estimates in Q1

On June 1, BofA adjusted its outlook on Kayne Anderson BDC Inc. (NYSE:KBDC) and lowered its price target from $17 to $16.50 while maintaining a Buy rating on the shares. This decision followed the business development company’s Q1 2025 results, which were deemed somewhat disappointing due to a weaker-than-anticipated profitability.

BofA Trims Kayne Anderson (KBDC) PT to $16.50, Cites Missed Estimates in Q1 2025

A close-up of a hand signing a contract, symbolizing deals being made in private equity and buyouts.

Kayne Anderson reported a net investment income of $28.7 million, which was a decrease from $34 million in the prior quarter. Quarterly revenue totaled $42.13 million, which also represented a 16.35% year-over-year drop due to reduced base rates and the expiration of an incentive management fee waiver. Despite the challenges, the company saw only a small uptick in non-accruals, which reached 2.9%, significantly below the industry’s longer-term average.

Kayne Anderson is prioritizing growth through its private middle market investment activity. In Q1, the company made $340 million in total commitments across 16 businesses, with $264 million funded. This marks a 113% increase year-over-year. The company focuses on senior secured first-lien loans, with over 90% of its portfolio in such securities and 99% of its private middle market investments backed by private equity sponsors.

Kayne Anderson BDC Inc. (NYSE:KBDC) is a business development company and an externally managed, closed-end, and non-diversified management investment company.

While we acknowledge the potential of KBDC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KBDC and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.